Member states’ diplomatic representatives accredited to The Netherlands comprise the Administrative Council, under the chairmanship of the Netherlands Minister for Foreign Affairs. This body, in consultation with the Secretary-General, shapes the policy of the organization. It provides general guidance on the work of the PCA, and supervises its administration, budget and expenditure. The Council operates under the Rules of Procedure of the Administrative Council of the Permanent Court of Arbitration.
The budget of the PCA is funded in part by contributions from member states, the amount of which is based on the system of units maintained by the Universal Postal Union (one of the few intergovernmental organizations in existence in 1899). The Secretary-General reports annually to the Administrative Council on the activities of the PCA and its expenditure.
The Administrative Council entrusts the financial supervision of the International Bureau to a Financial Committee composed of three members of the Administrative Council resident in The Hague. Its membership is “renewed annually on the first day of January, by replacement of one member, according to the alphabetical order of the Powers” (in French) pursuant to Article XI of the Rules of Procedure of the Administrative Council. In 2004, the Administrative Council established a Budget Committee to exist and function in parallel to the Financial Committee. The Budget Committee is open to the representatives of all member states, enabling the full membership of the organization to give early consideration to Council documents of a financial nature.